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The research aims to explore the links between CEO power, managerial overconfidence, and the propensity for corporate risk-taking in Nigerian firms.

March 16, 2026Open Access

CEO Power, Managerial Overconfidence, and Corporate Risk-Taking in Nigerian Listed Firms

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Examines how CEO power and managerial overconfidence affect corporate risk-taking in Nigerian firms, suggesting governance implications.

The research aims to explore the links between CEO power, managerial overconfidence, and the propensity for corporate risk-taking in Nigerian firms.
Examined 151 firms listed on the Nigerian Exchange Group (NGX) from 2010 to 2024.
Utilized an ex-post facto research design for analysis of historical data.
Employed panel regression analysis using fixed-effects and random-effects estimators.
Measured CEO power through a composite index and managerial overconfidence via capital expenditure and earnings bias.
CEO power is positively and significantly associated with corporate risk-taking.
Managerial overconfidence shows a strong positive relationship with risk-taking.
The interaction between CEO power and overconfidence intensifies risk-taking behavior.
Results are robust after controlling for firm characteristics like size, age, and financial leverage.

Onipe Adabenege Yahaya (2026) studied this question.

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